The interest rates published by ANZ Banking Group Limited in Fiji effective 1 June 2009 shows that the bank has started to work on complying with the Reserve Bank of Fiji's recent policy for banks to reduce their weighted average lending rates to the levels they were as at end December 2008 and to cap their interest spreads (i.e. the difference between a bank's weighted average lending rate and it's weighted average cost of funds) to 4% within 3 months from mid April 2009.
The rates published by ANZ Banking Group Limited sees its deposit rates kept at the same levels as they were previously.
However, Colonial National Bank has not reduced both its lending nor deposit rates as seen in the rates that the bank published effective 1 June 2009.
Westpac Banking Corporation Limited is yet to publish its interest rates.
After it does, we will review its rates and comment on it.
Note : For investment advice and portfolio management, pls call our office on (679) 3342719 or email info@gilbert.com.fj.
Sunday, May 31, 2009
Colonial National Bank Interest Rates (Updated 1.6.09)
Schedule of interest rates released by Colonial National Bank are as follows:
- Business Banking Base Rate – 9.20%;
- Residential Property Loan : Variable Rate – 9.50%, 1 Year Fixed Rate – 7.50%;
- Investment Loan : Variable Rate – 9.50%, 1 Year Fixed Rate – 7.50%;
- Retail Term Deposits: 9 months - 3.00%, 1 year - 3.50%, 1.5 Years - 3.75%, 2 Years - 4.00%, 3 Years - 4.50%.
Interest rates are on a per annum basis and may be varied by the bank without prior notice.
Individuals and groups that need investment advice and investment portfolio management services, can use our company, Gilbert & Samuels Company Limited.
We also do strategic planning, business continuity planning and capacity assessment consultancies. Our contacts are: telephones (679) 3342719, (679) 3544897 or e-mail: info@gilbert.com.fj.
ANZ Interest Rates (updated 1.6.09)
Schedule of interest rates released by ANZ Fiji are as follows:
- Business Index Rate - 10.75%;
- Residential Property Loan : Standard Variable Rate - 10.00%, 1 Year Fixed Rate - 8.50%;
- Investment Loan : Standard Variable Rate - 10.00%, 1 Year Fixed Rate - 8.50%;
- Personal Loans : Secured - 12.00%, Unsecured - 15.00%;
- Small Loans : Unsecured - 19.50%;
- Retail Term Deposits: 9 months to 1 year - 2.25%, 1 to 1.5 Years - 3.50%, 1.5 to 2 Years - 3.75%, 2 Years to 3 Years - 4.00%.
Interest rates are on a per annum basis and may be varied by ANZ without prior notice.
For investment advice and portfolio management, pls call our office on telephone (679) 3342719 or email info@gilbert.com.fj.
Monday, May 25, 2009
ANZ Interest Rates (updated 26.5.09)
Schedule of interest rates released by ANZ Fiji are as follows:
- Business Index Rate - 11.25%;
- Residential Property Loan : Standard Variable Rate - 10.50%, 1 Year Fixed Rate - 9.00%;
- Investment Loan : Standard Variable Rate - 10.50%, 1 Year Fixed Rate - 9.00%;
- Personal Loans : Secured - 12.50%, Unsecured - 15.20%;
- Small Loans : Unsecured - 20.00%;
- Retail Term Deposits: 9 months to 1 year - 2.25%, 1 to 1.5 Years - 3.50%, 1.5 to 2 Years - 3.75%, 2 Years to 3 Years - 4.00%.
Interest rates are on a per annum basis and may be varied by ANZ without prior notice.
Wednesday, May 20, 2009
Impact of recent policy decisions in Fiji
Recent policy decisions taken in Fiji have had implications which have taken place in a very short time.
A decision to retire civil servants at 55 years of age has resulted in a severe shortage of school teachers in Fiji schools as Term 2 of the school year began on Tuesday, 19 May 2009. Read here a story by Elenoa Baselala.
Earlier this week, it was reported that of the government personnel sent home upon reaching 55 years of age, about 200 are to be recruited again into the civil service as reported in the Fiji Times on Tuesday, 19 May 2009. This re-engagement of retired civil servants will add onto government costs as they will have to be insured at higher premiums, might have to be paid at a higher salary than what they were receiving when they were retired, and all this after they would have taken their funds from Fiji National Provident Fund. Most workers who continue working after 55 years of age, often choose to leave their funds there until such time they are effectively retired from employment.
After doctors and nurses have been sent home early on reaching 55 years, Government is now looking at recruiting doctors from India. The move will contribute to increased costs to Government as it pays high salaries and benefits package, in addition to relocation costs as it attempts to attract those doctors.
Last week, I had analysed that the Reserve Bank of Fiji's recent policy decisions will presumably see banks and financial institutions working to raise their non-interest income streams which would ultimately mean that banks will be paying more and higher bank charges. This is because the recent policy announcement by the Reserve Bank has only concentrated on containing interest rates and spreads. Banks and financial institutions might therefore not lose out at all as they make their money/profits from non-interest income streams. Read my posts on this blog last week.
The recent devaluation has not had a desired effect on the tourism industry in Fiji. Tourism Fiji, the former Fiji Visitors Bureau has reportedly said that they have not seen an increase in numbers of tourists as had been expected after Fiji devalued its dollar by 20% a month ago. There are, therefore, other factors that come into play. Are they linked to the political environment or are they more linked to the effect of the global crisis on people's purses as they suffer the fallout from global recession and higher costs of living?
Over recent weeks, most merchants in Fiji have some way or another benefited from the devaluation. Some have used the opportunity to raise their prices of goods at ridiculous levels. For instance, a Gillett Mach 3 Turbo 4-blade pack, which I would buy at around F$17.00, had risen to almost $25.00 with the reason given by the cashier, and with a smile, as "it's the devaluation". The Consumer Council of Fiji would really need to do a survey of some of these shops soon.
As Fiji works on attracting more foreign investment, one of the things that will need to be worked on is to ensure at all times that investors interests are adequately protected as they participate in commerce. If there are some issues with laws on a broader scale, research has shown that at an entity level, companies should at least attempt and put in place adequate safeguards to protect their interests of shareholders and owners. This serves as an attraction before an investor would decide to invest in business in a particular country.
Almost all our efforts in recent years and months have been focused on promoting more sports without much emphasis on other areas where our children could be exposed to help build their future. Read an earlier post I did on this on my other blog here.
In the meantime, Government has reduced the age where people are allowed to drink liquor from 21 to 18. In this environment, when things are looked at in totality, what are we promoting? Is it alcoholism at an early age? Read here.
When one analyses some of these policy decisions, it is difficult to see any coherent flow of policy ideology in some of these decisions. Policy makers will stand back and review some of these policies again or those that are still in the works before they introduce them to ensure coherence.
A decision to retire civil servants at 55 years of age has resulted in a severe shortage of school teachers in Fiji schools as Term 2 of the school year began on Tuesday, 19 May 2009. Read here a story by Elenoa Baselala.
Earlier this week, it was reported that of the government personnel sent home upon reaching 55 years of age, about 200 are to be recruited again into the civil service as reported in the Fiji Times on Tuesday, 19 May 2009. This re-engagement of retired civil servants will add onto government costs as they will have to be insured at higher premiums, might have to be paid at a higher salary than what they were receiving when they were retired, and all this after they would have taken their funds from Fiji National Provident Fund. Most workers who continue working after 55 years of age, often choose to leave their funds there until such time they are effectively retired from employment.
After doctors and nurses have been sent home early on reaching 55 years, Government is now looking at recruiting doctors from India. The move will contribute to increased costs to Government as it pays high salaries and benefits package, in addition to relocation costs as it attempts to attract those doctors.
Last week, I had analysed that the Reserve Bank of Fiji's recent policy decisions will presumably see banks and financial institutions working to raise their non-interest income streams which would ultimately mean that banks will be paying more and higher bank charges. This is because the recent policy announcement by the Reserve Bank has only concentrated on containing interest rates and spreads. Banks and financial institutions might therefore not lose out at all as they make their money/profits from non-interest income streams. Read my posts on this blog last week.
The recent devaluation has not had a desired effect on the tourism industry in Fiji. Tourism Fiji, the former Fiji Visitors Bureau has reportedly said that they have not seen an increase in numbers of tourists as had been expected after Fiji devalued its dollar by 20% a month ago. There are, therefore, other factors that come into play. Are they linked to the political environment or are they more linked to the effect of the global crisis on people's purses as they suffer the fallout from global recession and higher costs of living?
Over recent weeks, most merchants in Fiji have some way or another benefited from the devaluation. Some have used the opportunity to raise their prices of goods at ridiculous levels. For instance, a Gillett Mach 3 Turbo 4-blade pack, which I would buy at around F$17.00, had risen to almost $25.00 with the reason given by the cashier, and with a smile, as "it's the devaluation". The Consumer Council of Fiji would really need to do a survey of some of these shops soon.
As Fiji works on attracting more foreign investment, one of the things that will need to be worked on is to ensure at all times that investors interests are adequately protected as they participate in commerce. If there are some issues with laws on a broader scale, research has shown that at an entity level, companies should at least attempt and put in place adequate safeguards to protect their interests of shareholders and owners. This serves as an attraction before an investor would decide to invest in business in a particular country.
Almost all our efforts in recent years and months have been focused on promoting more sports without much emphasis on other areas where our children could be exposed to help build their future. Read an earlier post I did on this on my other blog here.
In the meantime, Government has reduced the age where people are allowed to drink liquor from 21 to 18. In this environment, when things are looked at in totality, what are we promoting? Is it alcoholism at an early age? Read here.
When one analyses some of these policy decisions, it is difficult to see any coherent flow of policy ideology in some of these decisions. Policy makers will stand back and review some of these policies again or those that are still in the works before they introduce them to ensure coherence.
Sunday, May 17, 2009
Fuel prices rise and increased costs of doing business in Fiji
Fuel prices rise again from today, Monday, 18 May 2009.
The increases are a result of increases in the international product price of fuel and also the recent devaluation of the Fiji dollar.
Prices outside Viti Levu will vary depending on cartage and freight charges to individual islands.
The increase in product prices brought about by the recent devaluation of the Fiji dollar will contribute to increased costs of doing business in Fiji which may also see an increased in business failures as costs spiral out of control for businesses.
So far Government has not announced any special concessions or benefits that can be tapped by small or micro business enterprises during these hard times.
It is expected that reduction in interest rates as intended by the Reserve Bank of Fiji's recent monetary policy announcements will benefit this sector.
Last weekend, ANZ has announced a reduction in its variable lending rates by 0.5% effective from 1 June 2009. The regulator hopes that all other banks will follow suit and announce reductions in their lending rates.
Note : For investment advice and portfolio management assistance, pls call our office on telephone (679) 3342719 or email info@gilbert.com.fj.
We also provide consulting services covering strategic and corporate planning, business continuity planning, capacity assessments and on any issue relating to the financial sector.
The increases are a result of increases in the international product price of fuel and also the recent devaluation of the Fiji dollar.
Prices outside Viti Levu will vary depending on cartage and freight charges to individual islands.
The increase in product prices brought about by the recent devaluation of the Fiji dollar will contribute to increased costs of doing business in Fiji which may also see an increased in business failures as costs spiral out of control for businesses.
So far Government has not announced any special concessions or benefits that can be tapped by small or micro business enterprises during these hard times.
It is expected that reduction in interest rates as intended by the Reserve Bank of Fiji's recent monetary policy announcements will benefit this sector.
Last weekend, ANZ has announced a reduction in its variable lending rates by 0.5% effective from 1 June 2009. The regulator hopes that all other banks will follow suit and announce reductions in their lending rates.
Note : For investment advice and portfolio management assistance, pls call our office on telephone (679) 3342719 or email info@gilbert.com.fj.
We also provide consulting services covering strategic and corporate planning, business continuity planning, capacity assessments and on any issue relating to the financial sector.
Friday, May 15, 2009
ANZ reduces variable lending rates
ANZ Banking Group Limited is the first bank to announce a reduction of 0.5% in all its variable rate loans as from 1 June 2009.
The announcement was made by the bank's Fiji General Manager, Robert Bell.
The bank said the reduction was a result of an increase in banking system liquidity due to improvement in export proceeds collections and the reduction in the statutory reserve deposit requirements of commercial banks.
ANZ has also said that its wholesale term deposit rates are to fall as well.
The bank has urged customers facing financial difficulties to contact their ANZ branch or relationship manager to discuss their positions, as soon as possible.
One should be expecting other banks to follow suit in reducing their interest rates after the announcement by ANZ.
The announcement was made by the bank's Fiji General Manager, Robert Bell.
The bank said the reduction was a result of an increase in banking system liquidity due to improvement in export proceeds collections and the reduction in the statutory reserve deposit requirements of commercial banks.
ANZ has also said that its wholesale term deposit rates are to fall as well.
The bank has urged customers facing financial difficulties to contact their ANZ branch or relationship manager to discuss their positions, as soon as possible.
One should be expecting other banks to follow suit in reducing their interest rates after the announcement by ANZ.
Subscribe to:
Posts (Atom)